{"id":386532,"date":"2026-06-08T16:00:38","date_gmt":"2026-06-08T10:30:38","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=386532"},"modified":"2026-06-08T16:04:27","modified_gmt":"2026-06-08T10:34:27","slug":"sc-holds-section-34-limitation-commences-upon-disposal-of-section-33-proceedings","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2026\/06\/08\/sc-holds-section-34-limitation-commences-upon-disposal-of-section-33-proceedings\/","title":{"rendered":"Section 34 Limitation Commences Upon Disposal of Section 33 Proceedings by Arbitral Tribunal: Supreme Court"},"content":{"rendered":"<style>\n.animate-charcter{background-image: linear-gradient(-225deg, #231557 0%, #44107a 29%, #ff1361 67%, #fff800 100%); background-size: 200% auto; -webkit-background-clip: text; -webkit-text-fill-color: transparent; animation: textclip 0s linear infinite;}\n@keyframes textclip {to {background-position: 200% center;}}\n<\/style>\n<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Supreme Court:<\/span> In an appeal assailing the order whereby delay in filing the applications under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544939\" target=\"_blank\">34<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration and Conciliation Act, 1996<\/a> (Arbitration Act), was condoned, the Division Bench of Pamidighantam Sri Narasimha and Alok Aradhe, JJ., held that once proceedings under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544938\" target=\"_blank\">33<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a>, are formally invoked and entertained by the Arbitral Tribunal, limitation for filing an application under Section 34 commences only from the date of disposal of such proceedings.<\/p>\n<p style=\"margin-bottom: 3%; font-weight: bold;\"><span style=\"color: #ff0000;\">Also Read:<\/span> <a href=\"https:\/\/www.scconline.com\/blog\/post\/2026\/04\/23\/sc-challenge-to-arbitral-award-by-legal-representatives-under-section-34-article-227\/\" target=\"_blank\">SC: Challenge to Arbitral Award by Legal Representatives Lies Only Under Section 34, not Article 227 | SCC Times<\/a><\/p>\n<h3>Background<\/h3>\n<p style=\"margin-bottom: 3%;\">The dispute arose from arbitral proceedings under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001563982\" target=\"_blank\">3-G(5)<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002948253\" target=\"_blank\">National Highways Act, 1956<\/a> (NH Act), for redetermination of compensation payable for land acquired for a national highway project in Bellary District. The High Court had earlier set aside the arbitral award and remitted the matter for de novo consideration, pursuant to which the arbitrator passed a fresh award granting the benefits of Sections <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001516991\" target=\"_blank\">23(1-A)<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001516991\" target=\"_blank\">23(2)<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001516996\" target=\"_blank\">28<\/a> and <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001517004\" target=\"_blank\">34<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-9000027868\" target=\"_blank\">Land Acquisition Act, 1894<\/a> (LA Act).<\/p>\n<p style=\"margin-bottom: 3%;\">Aggrieved thereby, the appellant filed an application under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544938\" target=\"_blank\">33(1)<\/a>(<span style=\"font-style: italic;\">a<\/span>), <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a>, seeking correction of the arbitral award on the ground that the grant of additional market value and interest under the LA Act was not legally sustainable. Respondent 1 also sought an additional award under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544938\" target=\"_blank\">33(4)<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a>. Both applications were dismissed by the arbitrator.<\/p>\n<p style=\"margin-bottom: 3%;\">The appellant thereafter instituted proceedings under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544939\" target=\"_blank\">34<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a>, along with applications seeking condonation of delay. Although the delay was condoned by the District Court, the High Court held that the appellant&#8217;s application did not fall within the scope of Section 33(1)(<span style=\"font-style: italic;\">a<\/span>) and hence the same was not maintainable. and, consequently, that the benefit of limitation under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544939\" target=\"_blank\">34(3)<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a>, was not available. The Section 34 proceedings were accordingly dismissed.<\/p>\n<p style=\"margin-bottom: 3%;\">Aggrieved by the judgment of the High Court, the appellant has filed the present appeal.<\/p>\n<h3>Primary Contention of the Parties<\/h3>\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Appellant (NHAI):<\/span> The appellant contended that, since both parties had filed applications under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544938\" target=\"_blank\">33<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a>, it could not have instituted proceedings under Section 34 before disposal of those applications. It was submitted that the High Court erred in refusing to exclude the period spent in the disposal of the Section 33 applications while computing limitation under Section 34(3) and in relying upon <span style=\"font-style: italic;\">State of Arunachal Pradesh<\/span> v. <span style=\"font-style: italic;\">Damani Construction Co.<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/k8Mg1y76\" target=\"_blank\">(2007) 10 SCC 742<\/a>, The appellant further contended that its application under Section 33(1)(<span style=\"font-style: italic;\">a<\/span>) merely sought correction of clerical and typographical errors in the arbitral award and did not amount to a review of the award. Reliance was placed on <span style=\"font-style: italic;\">Geojit Financial Services Ltd.<\/span> v. <span style=\"font-style: italic;\">Sandeep Gurav<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/ZmEPDPB6\" target=\"_blank\">2025 SCC OnLine SC 1811<\/a>.<\/p>\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Respondent 1:<\/span> Respondent 1 contended that the appellant&#8217;s application under Section 33(1)(<span style=\"font-style: italic;\">a<\/span>), in substance, sought review of the arbitral award and modification of its substantive findings, which fell outside the scope of Section 33(1)(<span style=\"font-style: italic;\">a<\/span>). It was submitted that only a maintainable application under Section 33 could extend the limitation under Section 34(3) and, therefore, the appellant was not entitled to exclusion of the time spent in disposal of its application. Placing reliance on <span style=\"font-style: italic;\">Damani Construction<\/span>, Respondent 1 further contended that the Arbitral Tribunal had become <span style=\"font-style: italic;\">functus officio<\/span> after passing of the award and that the Section 34 applications were barred by limitation even if the period spent in disposal of the Section 33 application was excluded.<\/p>\n<h3>Issue<\/h3>\n<p style=\"margin-bottom: 3%;\">Whether the limitation under Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544939\" target=\"_blank\">34(3)<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a>, would commence from the date of the original award or from the date on which the application under Section 33 of the Act came to be disposed of?<\/p>\n<h3>Analysis, Findings and Decision<\/h3>\n<p style=\"margin-bottom: 3%;\">At the outset, the Court perused the relevant parts of Sections <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544938\" target=\"_blank\">33<\/a> and <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544939\" target=\"_blank\">34<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a>, and noted that Section 33 deals with requests made to the Arbitral Tribunal for correction and interpretation of an award as well as for rendering an additional award. The Court further noted that an application under Section 33 is required to be made within a period of 30 days from the date of receipt of the award.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court observed that Section <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001544939\" target=\"_blank\">34(3)<\/a>, <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726958\" target=\"_blank\">Arbitration Act<\/a>, provides that where a request under Section 33 has been made, limitation for filing an application under Section 34 is to be reckoned from the date on which such request is disposed of by the Arbitral Tribunal. The Court noted that the provision neither distinguishes between applications ultimately allowed or dismissed nor indicates that only a maintainable application under Section 33 would defer the commencement of limitation under Section 34(3). The Court held that it could not read into the provision a restriction which the legislature had not consciously incorporated.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court further observed that once proceedings under Section 33 are initiated and entertained by the Arbitral Tribunal, the award remains subject to the Tribunal&#8217;s limited jurisdiction for correction, interpretation or supplementation contemplated under the provision. The Court held that, so long as such proceedings remain pending, parties cannot be compelled to institute proceedings under Section 34 merely as a matter of abundant caution and that limitation under Section 34(3) can commence only from the date of disposal of the Section 33 proceedings.<\/p>\n<p>The Court rejected the respondent&#8217;s contention that only a &#8220;maintainable&#8221; application under Section 33 could defer the commencement of limitation under Section 34(3). The Court held that,<\/p>\n<p class=\"animate-charcter\" style=\"margin-left: 36pt; margin-bottom: 3%; font-weight: bold; font-style: italic;\">&#8220;Whether the application under Section 33 ultimately succeeds or fails, or whether the Arbitral Tribunal eventually finds that no correction or modification of the award is warranted, is not determinative for the purpose of Section 34(3). What is relevant is that whether the jurisdiction of the Arbitral Tribunal under Section 33 had been formally invoked and that such proceedings remained pending consideration before the Tribunal.&#8221;<\/p>\n<p style=\"margin-bottom: 3%;\">The Court held that the respondent&#8217;s reliance on <span style=\"font-style: italic;\">Damani Construction<\/span> was misplaced, observing that the said case arose in an entirely different factual context where there was no formal application under Section 33 invoking the jurisdiction of the Arbitral Tribunal. In the present case, the Court noted that formal applications under Section 33 had admittedly been filed by both parties within the statutory period and had been entertained and disposed of by the Arbitral Tribunal.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court further observed that the interpretation adopted by the High Court would defeat the scheme and object of the Arbitration Act, as compelling parties to institute proceedings under Section 34 during the pendency of Section 33 proceedings merely as a matter of abundant caution would result in multiplicity of proceedings and procedural uncertainty. The Court, however, clarified that, <span style=\"font-style: italic;\">&#8220;where applications under Section 33 are found to be sham, frivolous, or mala fide or solely filed for the purpose of defeating limitation under Section 34(3) of the Act, the courts would be justified in imposing exemplary and punitive costs, as maintaining the balance between preserving legitimate remedies and preventing abuse of process is fundamental to effective administration of justice&#8221;.<\/span><\/p>\n<p style=\"margin-bottom: 3%;\">The Court stated that the issue was no longer <span style=\"font-style: italic;\">res integra<\/span>. The Court referred to its earlier decisions in <span style=\"font-style: italic;\">Ved Prakash Mithal and Sons<\/span> v. <span style=\"font-style: italic;\">Union of India<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/NMXmskdT\" target=\"_blank\">2018 SCC OnLine SC 3181<\/a>; <span style=\"font-style: italic;\">USS Alliance<\/span> v. <span style=\"font-style: italic;\">State of U.P.<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/xw64b0P7\" target=\"_blank\">2023 SCC OnLine SC 778<\/a> and <span style=\"font-style: italic;\">Geojit<\/span>, holding that, for the purposes of computation of limitation under Section 34(3), the date of disposal of an application under Section 33 marks the starting point of limitation for filing an application under Section 34. The Court agreed with the said view and held that once jurisdiction under Section 33 is formally invoked and such proceedings are entertained by the Arbitral Tribunal, limitation under Section 34 commences only from the date of disposal of such request.<\/p>\n<p style=\"margin-bottom: 3%; font-weight: bold;\"><span style=\"color: #ff0000;\">Also Read:<\/span> <a href=\"https:\/\/www.scconline.com\/blog\/post\/2026\/03\/02\/section-34-4-remission-arbitral-awards-gayatri-balasamy\/\" target=\"_blank\">Section 34(4) Remission of Arbitral Awards | Gayatri Balasamy Analysis | SCC Times<\/a><\/p>\n<p style=\"margin-bottom: 3%;\">Applying these principles, the Court noted that the Section 34 applications had been instituted within the period contemplated under Section 34(3), reckoning limitation from the date of receipt of the order disposing of the Section 33 applications. The Court, therefore, held that the respondent&#8217;s objection on limitation did not merit acceptance.<\/p>\n<p style=\"margin-bottom: 3%;\">Accordingly, the Court set aside the High Court&#8217;s judgment, restored the District Court&#8217;s orders condoning the delay in filing the Section 34 applications, and directed that the Section 34 applications be decided on their own merits in accordance with law. The appeal was allowed.<\/p>\n<p style=\"margin-bottom: 3%; font-weight: bold;\"><span style=\"color: #ff0000;\">Also Watch:<\/span> <a href=\"https:\/\/www.scconline.com\/blog\/post\/2026\/02\/05\/arbitration-appellate-tribunal-section-34-speed-vs-finality-legal-news\/\" target=\"_blank\">Arbitration Appellate Tribunal under Section 34: Speed v Finality Debate<\/a><\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\"><span style=\"font-style: italic;\">NHAI<\/span> v. <span style=\"font-style: italic;\">T. Younis<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/2bYd352X\" target=\"_blank\">2026 SCC OnLine SC 1060<\/a>, decided on 2-6-2026<\/span>]<\/p>\n<hr\/>\n<p>Advocates who appeared in this case:<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the appellant:<\/span> Senior Advocate Pinky Anand<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">For the respondents:<\/span> Senior Advocate Sushil Kumar Jain<\/p>\n<h3 style=\"color: #000080;\">Buy Arbitration and Conciliation Act, 1996 &nbsp; <a href=\"https:\/\/www.ebcwebstore.com\/product_info.php?products_id=382\" target=\"_blank\">HERE<\/a><\/h3>\n<p style=\"margin-bottom: 3%;\"><a href=\"https:\/\/www.ebcwebstore.com\/product_info.php?products_id=382\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996-191x300.png\" alt=\"arbitration and conciliation act, 1996\" width=\"191\" height=\"300\" class=\"aligncenter size-large wp-image-294803\" srcset=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996-191x300.png 191w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996-38x60.png 38w, https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/06\/arbitration-and-conciliation-act-1996.png 620w\" sizes=\"auto, (max-width: 191px) 100vw, 191px\" \/><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">The Court clarified that limitation under Section 34, Arbitration Act, begins only upon disposal of proceedings formally instituted and entertained under Section 33 by the Arbitral Tribunal.<\/p>\n","protected":false},"author":67011,"featured_media":386535,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,9],"tags":[2633,35672,40741,30168,57325,2723,35513,3655,31312,84754,31683,78952,84117,5363],"class_list":["post-386532","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-supremecourt","tag-arbitral_award","tag-arbitral-tribunal","tag-arbitration-and-conciliation-act-1996","tag-justice-alok-aradhe","tag-justice-pamidighantam-sri-narasimha","tag-Land_Acquisition","tag-land-acquisition-act-1894","tag-limitation","tag-national-highway-authority-of-india","tag-national-highways-act-1956","tag-nhai","tag-section-33-arbitration-act","tag-section-34-arbitration-act","tag-supreme-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - 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